Press Release Article


PORT AUTHORITY AND CONDÉ NAST SIGN 1 MILLION SQUARE FOOT LEASE FOR PUBLISHING GIANT TO ANCHOR ONE WTC

Date: May 25, 2011
Press Release Number: 28-2011

Condé Nast – one of the world's leading publishing and media companies – today signed a lease with the Port Authority of New York and New Jersey to occupy one-third of One World Trade Center, soon to be the nation's tallest building.

The lease signing, which is the largest in Lower Manhattan in more than 25 years, validates the turnaround at the World Trade Center site and signals to the market that the new World Trade Center is fast becoming the first address in New York for premier corporate tenants. It also represents a boon for Downtown as Condé Nast's move to Times Square in 1999 triggered a renaissance of that neighborhood, driving an explosion of high-end retail and commercial development.

The publishing company's lease calls for an initial 25-year term for just over one million square feet of office space on floors 20 through 41 of the building. The space will house the publishing giant's global headquarters and its 18 magazines, 27 Web sites and other affiliated business, among them Vogue, Architectural Digest, Vanity Fair, Wired and The New Yorker.

Most of Condé Nast's employees will travel to work on public transportation, and the new WTC Transportation Hub – scheduled to open in 2014 – will greatly enhance their ability to get to and from work with the highest concentration of mass transit in the City.

Condé Nast is the second corporate tenant lease signed to date at the 3 million square foot One World Trade Center. In March 2009, the Port Authority and China Center New York LLC, a division of Vantone Industrial Co., Ltd., signed a 190,810-square-foot lease, which covers portions of the 64th floor and the entire 65th through 69th floors of One World Trade Center. Cushman & Wakefield is the exclusive leasing agent for the building's 1.8 million square feet of office space that remains available.

Governor Andrew M. Cuomo said, "Today's significant lease agreement with Condé Nast paves the way for the revitalization of Lower Manhattan and sends the clear message that New York is open for business once again. Attracting premier businesses to One World Trade Center is essential to creating new jobs and reinvigorating our economy, and I congratulate Condé Nast for leading the way. I thank our partners in both government and the private sector for helping to achieve this exciting development."

"Finalizing Condé Nast as the anchor tenant at One World Trade Center is an important milestone in creating and generating future economic growth for our region,' said Governor Chris Christie. "This is a significant, exciting accomplishment in the Port Authority's history and redevelopment of the World Trade Center."

New York City Mayor Michael Bloomberg said, "It wasn't long ago that few would have believed it possible that a publishing industry giant like Condé Nast would be relocated to the World Trade Center site, but today – with the site rising and Lower Manhattan thriving – it's a reality. Condé Nast has always been something of a trendsetter, and its move is sure to attract others to the area, further strengthening and diversifying the Lower Manhattan economy."

Port Authority Chairman David Samson said, "Congratulations to Condé Nast, the Durst Organization, and the staff that worked tirelessly to form this partnership that will be regarded as a historic milestone for the city and region. Under the leadership of Governors Chris Christie and Andrew Cuomo, the Port Authority will continue to be an economic force as the World Trade Center attracts new business and creates new opportunities for our region."

Port Authority Executive Director Chris Ward said, "We built a new reality at the World Trade Center and this transaction will be the exclamation point on that turnaround. Completing this lease with Condé Nast is a game changer and will be truly transformative for Downtown. I want to thank Condé Nast for their vision in seeing the opportunity at the World Trade Center, The Durst Organization for their partnership in this transaction and Governor Cuomo for providing the leadership to drive this lease forward."

Port Authority Deputy Executive Director Bill Baroni said, "We look forward to a long partnership with Condé Nast and the Durst Organization as pioneers in the resurgence of Lower Manhattan. The Port Authority is committed to leading economic growth and job creation throughout the region, and this deal, complemented by expansive retail space and the Transportation Hub which will serve hundreds of thousands of passengers each day, only underscores that commitment."

S. I. Newhouse, Jr., Chairman of Condé Nast, said, "Condé Nast has a long history in New York and has thrived in part due to the city's indefatigable energy, power and vitality. We are proud to be taking part in the revitalization of Lower Manhattan.

Kenneth Adams, Empire State Development President, CEO and Commissioner, said, "Today's lease signing between Condé Nast and the Port Authority represents a tremendous resurgence of both dollars and jobs in Lower Manhattan and, in particular, One World Trade Center. Condé Nast has a long and important history in New York; I'm pleased the company is enhancing its commitment to New York State."

Peter W. Davidson, Empire State Development Executive Director, said, "The significance of Condé Nast's lease at 1 World Trade Center cannot be overstated. A tenant of this stature reflects industry confidence that the revitalization of Lower Manhattan is in full swing. The State is pleased to have played a part through ESD's WTC Rent Reduction Program. Congratulations to the Port Authority, The Durst Organization, and all involved in this successful outcome."

Designed by architect David Childs, of Skidmore, Owings and Merrill, One World Trade Center will be the tallest building in the United States and includes state-of-the-art security, architectural and environmental elements.

Upon completion, the LEED Gold building will include 3 million square feet of signature Class A office space, an observation deck, and connect to 500,000 square feet of world-class retail and the largest concentration of mass transit in New York City.

Currently, One World Trade Center is up to the 66th floor level and rising at a rate of one floor per week. It is scheduled to be completed at the end of 2013.

The lease was finalized by a team led by Philippe Visser of the Port Authority, Tara Stacom and Alan Stein of Cushman & Wakefield and Mary Ann Tighe and Greg Tosko of CB Richard Ellis.

In a related action, the Board today finalized an agreement with The Durst Organziation for an equity membership in One World Trade Center. Under the agreement, Durst will make a minimum equity investment of $100 million for its membership interest in One World Trade Center LLC. Durst will take on primary responsibility for tenant fit-out, leasing and property management.

CONTACT: The Port Authority of New York and New Jersey

John P. Kelly or Steve Coleman, 212 435-7777

The Port Authority of New York and New Jersey, which is self-sufficient and does not receive tax dollars from either state, operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Auth


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